Indian Economy-News & Updates

[Abingdonboy]

^^ showed them!!


BBC News - Coca-Cola plans $5bn India investment to boost growth

 

[laman12345]

^^ showed them!!


BBC News - Coca-Cola plans $5bn India investment to boost growth

5bn in 8 years. only 0.6 billion per year

Coca-Cola invests over 5 billion per year in China

Why is solving India's inflation crisis important?

JUNE 26TH, 2012

All of us are aware of India’s inflation crisis. It is very disappointing, how we lost our grip on stable 4-to-5 per cent inflation which was prevailing earlier. From February 2006 onwards, in every single month, the y-o-y CPI-IW inflation has exceeded the upper bound of 5 per cent.

All of us agree that there is something insiduous when 10% inflation effectively steals 10% of the value of my wallet or fixed income investments.

Why is solving India’s inflation crisis important? « Citizen Economists

 

[Bhairava]

The Hindu : States / Tamil Nadu : Tamil Nadu records 9.39 per cent growth rate

Tamil Nadu, during the just concluded financial year of 2011-2012, recorded 9.39 per cent economic growth rate, the highest among southern States and much higher than the national average.....

....Another significant development the State witnessed last year was that it attained the second status in terms of the size of the economy, next to Maharashtra. In the process, Tamil Nadu overtook Uttar Pradesh and Andhra Pradesh. In 2011-2012, the value of the Gross State Domestic Product (at 2004-2005 prices) of Tamil Nadu was 4.28 lakh crore while it was 4.19 lakh crore in respect of Uttar Pradesh and 4.07 lakh crore in the case of Andhra Pradesh. The Maharashtra's GSDP value in 2010-2011 was 7.75 lakh crore, according to a senior policy maker.....

 

[laman12345]

As rupee falling, smaller Indian companies sweat!

28-06-2012

His company, Atam Manohar Ship Breakers, bought a ship in February for $6 million when the local currency was close to its peak for the year at 49 to the dollar.

He now faces installment payments in July and August, with the rupee recently hitting a record low of 57.32 to the dollar.

Small companies are not the only ones facing losses: large ones such as Cairn India, Tata Power, Chennai Petroleum Corp, and Varun Shipping each reported forex losses of over 1 billion rupees in the quarter ended March.


"Everybody is worried"


As rupee skids, smaller Indian companies sweat | Reuters

 

[IndoCarib]

India Plans $5.3 Billion of Highways as Jams Sap Growth

The country intends to add about 1,600 kilometers (1,000 miles) of roads with at least six lanes, Raghav Chandra, joint secretary at the Ministry of Road Transport and Highways, said in an interview on June 14. He didn’t give a timeframe for awarding construction contracts or for completing the projects.

India Plans $5.3 Billion of Highways as Jams Sap Growth - Bloomberg

 

[IndoCarib]

Foreign investors still upbeat on India


Optimists argue that India’s growth compares well with the rest of the world. India’s 5.3 per cent GDP growth rate for the quarter ended March 31 looked robust compared with, say, Brazil’s most recent quarterly rate of 0.8 per cent even if it looked anaemic next to the 9.1 per cent growth recorded 12 months earlier.

According to data collected by Morgan Stanley, revenues for listed companies for the quarter ended in March rose by 15 to 20 per cent. The prevailing pessimism of India Inc is possibly because profit growth, say observers, has dropped well below revenue growth because of higher labour costs.

Foreign investors still upbeat on India - FT.com

 

[cloud_9]

SAIL-led consortium may finalise pact with Afghanistan by July-end

NEW DELHI: The SAIL-led consortium may sign the final pact with Afghanistan by July-end to develop a steel plant, a thermal power plant and necessary infrastructure with total investments of over $ 10 billion, Afghanistan's mines minister Wahidullah Shahrani said here today.

"Right now, we are in the final stage of contract negotiation. Hopefully...by the end of July, we will be signing the agreement," Shahrani told reporters at the Delhi Investment Summit on Afghanistan organised by CII.

He said the agreement would be signed in Kabul and the total investment by the Indian consortium would be over $ 10 billion.

The Afghan Iron & Steel Consortium had emerged as the preferred bidder for mining exploration rights at three iron ore mines at Hajigak, having an estimated reserve of 1.7 billion tonnes.

SAIL has the maximum of 20 per cent equity stake in it, while NMDC and RINL hold 18 per cent each. Among private players, JSW and JSPL hold 16 per cent each, while JSW Ispat and Monnet Ispat & Energy hold 8 per cent and 4 per cent stake, respectively.

He said Afghanistan will ensure the supply of coking coal, an important raw material for steel making. The Indian consortium had placed the raw material security as a pre- condition for setting up the steel plant.

"Everything has been included in the negotiation. Any raw material that will be needed for making steel including coking coal would be given to them," Shahrani said.

SAIL Chairman C S Verma had earlier said the consortium proposes to set up of a 6.12 million tonnes per annum (mtpa) steel plant in Afghanistan in two phases of 3.06 MT each, subject to Afghanistan government making available linkages for coking coal and limestone in requisite volumes.

There is also plan to build a 800 MW power plant in two phases of 400 MW each to cater to the operations of the mine and steel plant. As part of building necessary internal infrastructural support, the consortium plans to build 200 kms each of rail, road and transmission line network for the mine and steel project.

"The total investment by AFISCO on all of the above is estimated to be US$ 10. 8 billion in phases, subject to negotiations," Verma had said.

Sterlite, JSPL, Monnet eager to join PSUs for Afghan mines

NEW DELHI: Sterlite Industries, Jindal Steel and Power and Monnet Ispat and Energy have evinced interest in joining hands with four PSUs, including Hindustan Copper (HCL), to form a special purpose vehicle to bid for gold and copper mines in Afghanistan.

"Three parties are exploring opportunities to participate with us so that one bid from India as a country is placed. We have not yet taken a final decision (on their inclusion). We will be taking it shortly," HCL Chairman and Managing Director Shakeel Ahmed told reporters at the Delhi Investment Summit on Afghanistan.

The three companies -- Sterlite Industries, Jindal Steel and Power and Monnet Ispat and Energy -- would possibly form a joint venture, if included, with four state-run firms -- HCL, Nalco, MECL and SAIL, he said.

The Afghanistan government has invited bids from interested parties for developing four copper and gold mines, spread across the war-torn country. Its Mines Minister Wahidullah Shahrani, while speaking at the function earlier in the day, said a total of 40 companies including the world's majors have evinced interests for developing these mines.

The unique public and private sector joint venture model for securing raw material assets abroad has already tasted success and more recently in Afghanistan itself with a seven- member public-private sector consortium, led by SAIL, bagging mining rights in three Hajigak iron ore mines.

The consortium has plans to invest over $ 10 billion for a steel plant, a power plant and developing other infrastructure.

It has already went past the first hurdle by being shortlisted and now would place the financial bid, which would be submitted shortly.

Ahmed said there are separate dates for submitting bids for different deposits. However, for the first one, final bid is to be submitted by the middle of next month.

Keen on coal mines in Indonesia, South Africa: Tata Power

MUMBAI: Leading private utility Tata Power has said to ensure future fuel supply, it will continue to look for coal mines abroad, as the domestic supply shortage has been impacting its operations.

"We are already scouting for coal mines overseas. We are looking at Indonesia and South Africa for acquiring coal mines," Tata Power Executive Director for Operations S Padmanabhan told reporters in an interview here today.

The price of imported coal is nearly the double the domestic rates hence companies are not keen on running their plants such coal supplies alone, as they are not able to pass on the price difference to discoms in most cases.

While a tonne of imported coal is priced at $ 110, the same is available in the domestic market at half that cost. But the state-run monopoly Coal India is able to supply only around 70 percent of the domestic demand.

Coal India currently produces only 440 million tonne, while the demand is 650 mt. Coal India is meeting the gap through imports.

Explaining the rationale for owning more mines overseas, Padmanabhan said, "given the demand for the fuel for our power plants and the shortage of domestically produced coal, we have to depend on imports."

Though he did not elaborate on the timeline for any such deal or the quantum of funds earmarked for this, he explained that this would not be an outright purchase but mostly picking up stakes in already operating mines.

Currently, the company sources coal from four mines in Indonesia and two from Australia.

Out of these four Indonesian mines, Tata Power already owns 30 percent stake each in two of them, with an offtake of a little over 40 mt annually from them.

 

[IndoCarib]

India still world's second most economically confident nation: Report

New Delhi: Weakness in rupee, high inflation and slowdown in growth led to decline in economic confidence in the country in May compared to the earlier month, according to research firm Ipsos.

According to the Ipsos Economic Pulse of the World Survey, economic confidence among Indians declined by two points to 70 percent in the month of May as compared to the previous month. It had stood at 72 in April.

However, India continued to retain the second most economically confident nation title after Saudi Arabia, which tops the table with a wide margin at 88 percent in May.

 

[cloud_9]

RBI notifies changes in FDI norms

MUMBAI: The Reserve Bank today notified changes in the FDI policy to allow FIIs to invest up to 23 per cent in commodity exchanges without seeking its prior approval.

These changes were approved by the Department of Industrial policy and Promotion (DIPP) on April 10.

In order to streamline the procedures to boost foreign investment into the country, the DIPP comes out with a consolidated FDI circular every year. The next circular would be released on March 29, 2013.

In a communication to the banks, the RBI said that "banks may bring the contents of this circular to the notice of their constituents and customers concerned".

The DIPP had also withdrew the facility of giving equity in lieu of import of second hand equipment. This move was aimed at discouraging import of sub-standard machinery.

It had also made certain other procedural changes in the circular and incorporated announcements made with regard to 100 per cent FDI in single brand and relaxation of guidelines for pharmaceutical sector.

As regard the commodity exchanges, at present, foreign investment, within a composite (FDI and FII)cap of 49 per cent, under the government approval route is permitted in commodity exchanges.

 

[lightoftruth]

Rupee up 25 paise against dollar

The rupee appreciated by 25 paise to 56.55 against the U.S. dollar in early trade on Friday at the Interbank Foreign Exchange market on hopes that the government will take steps to check the currency’s slide.

Besides, dollar selling by banks and exporters amid euro strengthening the American currency overseas after the European Union reaffirmed its commitment to use its bailout funds flexibility also supported the rupee.

The rupee closed at 56.80 in Thursday’s trade, a rise of 35 paise, or 0.61 per cent, its biggest percentage gain in two weeks.

Meanwhile, the BSE benchmark index Sensex surged by 269.49, or 1.58 per cent, to 17,260.25 in early trade on Friday.

The Hindu : Business / Markets : Rupee up 25 paise against dollar

Sensex zooms 269 points in early trade

Extending gains for the fourth day in a row, the BSE benchmark Sensex rose by hefty 269 points in early trade on Friday on sustained buying by funds and retailers on hopes that the government will announce economic reforms to revive the economy.

The 30-share barometer, which had climbed by 108 points in the past three sessions, rose by another 269.49 points, or 1.58 per cent, to 17,260.25.

All sectoral indices, led by banking and capital goods, were trading in the positive zone with gains of up to 1.76 per cent.

The wide-based National Stock Exchange index Nifty also moved up by 78.20 points, or 1.57 per cent, to 5,227.35.

In the Asian region, Japan’s Nikkei was up by 1.50 per cent, while Hong Kong’s Hang Seng index gained 1.96 per cent in early trade.

The Hindu : Business / Markets : Sensex zooms 269 points in early trade

 

[kurup]

Madhya Pradesh's GDP goes up to 12%

BHOPAL: Madhya Pradesh's Gross Domestic Product ( GDP) growth rate has swelled to 12 per cent in the last fiscal from 8 per cent in 2010-11, according to the revised estimates, officials said on Friday.

Besides, the state, having agrarian economy, recorded 18 per cent agriculture growth rate in 2011 - 12, they added.

The economic and agriculture growth is bound to benefit a huge populace engaged in construction and agriculture sector by opening avenues of better health, education facilities, among other things for them. It development will also pave way for greater capital investment and production, they said.

Furthermore, MP has clocked close to 17 per cent in manufacturing and 8 per cent in industrial growth augmenting job opportunities, they added.

In last four years, MP stood third in terms of growth in country and it growth rate had been above the all India average growth rate, officials said. .

A decade ago, MP witnessed a negative growth. It was -7 per cent in the fiscal 2000-01 and -4 per cent in 2002-03 and it was mere 3 per cent in 2004-05.

Madhya Pradesh's GDP goes up to 12 per cent - The Times of India

 

[Matrixx]

Rupee up 25 paise against dollar

The rupee appreciated by 25 paise to 56.55 against the U.S. dollar in early trade on Friday at the Interbank Foreign Exchange market on hopes that the government will take steps to check the currency’s slide.

Besides, dollar selling by banks and exporters amid euro strengthening the American currency overseas after the European Union reaffirmed its commitment to use its bailout funds flexibility also supported the rupee.

The rupee closed at 56.80 in Thursday’s trade, a rise of 35 paise, or 0.61 per cent, its biggest percentage gain in two weeks.

Meanwhile, the BSE benchmark index Sensex surged by 269.49, or 1.58 per cent, to 17,260.25 in early trade on Friday.

The Hindu : Business / Markets : Rupee up 25 paise against dollar

Sensex zooms 269 points in early trade

Extending gains for the fourth day in a row, the BSE benchmark Sensex rose by hefty 269 points in early trade on Friday on sustained buying by funds and retailers on hopes that the government will announce economic reforms to revive the economy.

The 30-share barometer, which had climbed by 108 points in the past three sessions, rose by another 269.49 points, or 1.58 per cent, to 17,260.25.

All sectoral indices, led by banking and capital goods, were trading in the positive zone with gains of up to 1.76 per cent.

The wide-based National Stock Exchange index Nifty also moved up by 78.20 points, or 1.57 per cent, to 5,227.35.

In the Asian region, Japan’s Nikkei was up by 1.50 per cent, while Hong Kong’s Hang Seng index gained 1.96 per cent in early trade.

The Hindu : Business / Markets : Sensex zooms 269 points in early trade

Sensex end up 439 point up

 

[arp2041]

Madhya Pradesh's GDP goes up to 12%

BHOPAL: Madhya Pradesh's Gross Domestic Product ( GDP) growth rate has swelled to 12 per cent in the last fiscal from 8 per cent in 2010-11, according to the revised estimates, officials said on Friday.

Besides, the state, having agrarian economy, recorded 18 per cent agriculture growth rate in 2011 - 12, they added.

The economic and agriculture growth is bound to benefit a huge populace engaged in construction and agriculture sector by opening avenues of better health, education facilities, among other things for them. It development will also pave way for greater capital investment and production, they said.

Furthermore, MP has clocked close to 17 per cent in manufacturing and 8 per cent in industrial growth augmenting job opportunities, they added.

In last four years, MP stood third in terms of growth in country and it growth rate had been above the all India average growth rate, officials said. .

A decade ago, MP witnessed a negative growth. It was -7 per cent in the fiscal 2000-01 and -4 per cent in 2002-03 and it was mere 3 per cent in 2004-05.

Madhya Pradesh's GDP goes up to 12 per cent - The Times of India

Thanks to Digi Raja, he left no stone unturned to register MP in the list of BIMARU states.

 

[Matrixx]

All NDA States are doing excellent

 

[Hello_10]

Rupee posts its biggest daily gain in three years; sensex jumps 439 points


MUMBAI: The rupee posted its biggest daily gain in three years on Friday after the government confirmed it will not impose retroactive taxes on foreign investors and as global risk asset rallied.

Euro zone leaders agreed on Friday to take emergency action to bring down Italy's and Spain's spiralling borrowing costs and to create a single supervisory body for euro zone banks by the end of this year, a first step towards a European banking union.

The improved global risk environment comes as investors are growing more hopeful of meaningful policy reforms at home after Prime Minister Manmohan Singh, a former central bank governor, took charge of the finance ministry.

The government released draft rules on Thursday and said the general anti avoidance rules, or GAAR, would not apply retroactively, a big concern for portfolio investors.

"The INR may outperform as well as India seems to be backtracking on its plans to retroactively apply new tax rules that would penalize a major foreign direct investor," said Dariusz Kowalczyk, senior economist & strategist for Asia ex-Japan at Credit Agricole.

The rupee settled at 55.6050/6150 as per State Bank of India data, rising 3.1 percent over its previous close. It rose 2.7 percent on the week, its biggest weekly gain in over two and half years. That marked a turnaround after the rupee tumbled to a record low of 57.32 against the dollar a week ago.

"I will wait for more clarity on the euro measures. The dollar/rupee broke a very important support at 56. If it sustains below that, we can see a further fall," said Abhishek Goenka, chief executive at India Forex Advisors.

India has been buffeted by various macroeconomic concerns, primarily the twin fiscal and current account deficits, leaving it vulnerable to capital outflows at a time of global risk aversion.

However, with Singh, widely credit with ushering in economic reforms in India in the 1990s, taking charge of the finance portfolio, investors are hoping he will push some much awaited reforms and address concerns on tax issues.

Global risk aversion has also improved. The euro surged following relief after the statement from European leaders, raising hopes it could help ease a big recent overhang in global markets. One-month offshore non-deliverable forward contracts were quoted at 56.02.

In the currency futures market, the most traded near-month dollar-rupee contracts on the National Stock Exchange, the United Stock Exchange and the MCX-SX all ended at 56.0550. The total volume was at $4.9 billion.

Rupee ends at 55.60; gains most in 3 years as risk assets rally - The Economic Times


Stock markets closed on Friday with the biggest single-day gain of 439 points in 2012 as investors, richer by Rs 1.17 lakh crore, cheered clarity on tax-avoidance rules and upbeat global market sentiments.

Sensex, which rose for the fourth straight day, opened higher with the Finance Ministry announcing the draft GAAR guidelines late last night.

Sentiments improved further as foreign inflows poured in after global investment bank Morgan Stanley upgraded India markets to “equal-weight” from the long-standing “under—weight” status.

The bullish sentiment was further supported by news that meeting of EU leaders have come up with a plan for a single financial supervisory mechanism for the debt-ridden region.

The BSE benchmark index settled at 17,429.98 — a level last seen in April 19 -- higher by 439.22 points or 2.59 per cent. The gauge surpassed its previous biggest single-day gain of 434 points on June 6.

As many as 29 out of the 30-share Sensex ended higher with gains led by Jindal Steel that rose 8.74 per cent, followed by Tata Power,ICICI Bank, Bhel and Sterlite which rose in the 5—6 per cent range.

In the broader market, nearly 1,870 stocks rose with investor wealth going up from Rs 60.35 lakh crore to Rs 61.52 lakh crore.

The 50-share National Stock Exchange index Nifty spurted by 129.75 points, or 2.52 per cent to 5,278.90 on fund-based buying in capital goods, power and banking stocks.

The Sensex has gained nearly 550 points in the last four days coinciding with Prime Minister Manmohan Singh himself taking over charge of finance portfolio and signalling speedy revival of the slowing economic growth.

The Hindu : Business / Markets : Sensex up 439 points